Geoff Kendrick, Standard Chartered Bank analyst and head of digital asset research, believes that bitcoin (BTC) will likely trend higher after the halving due to fewer leveraged positions in the market .
Speaking to BNN Bloomberg in an interview over the weekend, Kendrick said the current market environment, characterized by lower leverage, could propel BTC’s value toward the ending price target year from Standard Chartered of $150,000.
A low leverage market
The week leading up to Bitcoin’s halving weekend ended with millions of liquidations of short and long positions across the crypto market as tensions escalated in the Middle East. BTC plunged nearly ten thousand dollars as news of Iranian attacks on Israel made the rounds, leaving a trail of ruin in its wake.
Bitcoin went from $71,000 to $65,000 to $61,000 in one day. More than 300,000 merchants were destroyed, with liquidations amounting to $1.8 billion. This weekend’s bloodshed wiped out millions of leveraged Bitcoin positions, with April 13 alone marking the highest daily liquidation since October 2023.
Kendrick said the liquidation of leveraged positions has paved the way for the crypto market to trend upward and it is poised to move higher from its current position. Since the market has halved in terms of leverage, it could rebound and reach new levels.
ETF Inflows to Drive BTC Uptrend
Aside from less leveraged positions in the market, Kendrick also mentioned inflows into spot Bitcoin exchange-traded funds (ETFs) and expected positive news from the Iran-Israel situation as potential catalysts for a downward trend. rise in BTC.
Although spot Bitcoin ETF inflows are stalled for now, the Standard Chartered analyst expects inflows of $50 billion to $100 billion over the next 18 to 24 months as as the market matures. Comparing the Bitcoin ETF space to that of gold, Kendrick predicted it could grow 4.3x as flows continue over time, propelling BTC to $150,000 by end of 2024 and to $200,000 by 2025.
Meanwhile, Standard Chartered predicts that BTC could reach $250,000 in 2025 if Bitcoin ETF inflows reach the median estimate of $75 billion.